1. Accounting Concepts
The Company follows the Mercantile System of accounting, recognising,
income and expenditure on accrual basis. The accounts are prepared on
historical cost basis and as going concern. Accounting policies not
referred to specifically otherwise, are consistent with generally
accepted accounting principles.
2. Fixed Assets
Fixed Assets stated at their cost of acquisition (including the other
expenses related to installation) and pre-operative expenses
capitalisation during the current year. The leasehold land has been
obtained from Maharashtra Industrial Development Corporation for a term
of 95 years. The cost of the leasehold land will be amortised over the
balance period of the lease from the year in which the Company
commences its commercial activities there.
3. Revenue Recognition
Sale of goods is accounted for inclusive of sales tax. Lease income is
accounted for as and when the rent are due.
Inventories are valued as below :
1) Stores, spares and consumables at cost or net realisable value
whichever is lower.
2) Finished goods at cost or net realisable value whichever is lower.
1. Depreciation on fixed assets put to use has been provided on
prorate basis at the rate prescribed under The Schedule XIV of The
Companies Act, 1956 on W D V basis.